This past week saw some much appreciated green candlesticks, as the indices tried to shake off some of their recent losses. Although a week of green was a sight for sore eyes, we’re not out of the woods yet. Many stocks are still down 70, 80, and even 90% down from their all time highs hit. For those excited by this past week of gains, hold on tight, as next week’s events have the potential to create some turbulence in the market.
A key contributor to last week’s uptrend was a major decrease in commodities futures. WTI Crude, Brent Crude, Corn, and Oats were just a few commodities among many that saw a drastic drop in price over the past week. We saw both Brent and WTI Crude drop below $100/bbl briefly, signalling some potential relief at the pump for consumers in the near future.
Like we mentioned above, you best hold onto your hat for next week, as we’re likely going to see some volatility in the markets. On Wednesday, CPI data for the month of June will be released.
While consumer goods prices are beginning to cool down in the first full week of July, it’s important to remember that we saw record high prices at the pump in June, which caused downstream price increases in transportation/freight reliant industries.
Additionally, on Thursday, jobless data will be released, followed by retail sales data on Friday. Both of which in conjunction with CPI will help paint a better picture of how the average consumer is fairing through these challenging economic times, which will undoubtedly move markets.
The Q3 earnings season also kicks off this week. As per usual, big banks lead the charge with JP Morgan Chase (JPM) and Morgan Stanley (MS) reporting on Thursday, Wells Fargo (WFC), BlackRock (BLK), Citigroup (C), and U.S. Bancorp (USB) reporting on Friday. We’ll likely get some commentary on consumer bank balances, economic expectations, and potentially some mention of the recent events in the crypto markets.
Other notable earnings releases are Delta Air Lines (DAL) on Tuesday and Taiwan Semiconductor (TSM) on Thursday. DAL will provide some insight on the travel market, which has the potential to move other airlines stocks, such as AAL, UAL, and LUV. TSM will provide some much needed insight on the health of the chip market, potentially moving stocks like NVDA, AMD, and GFS.
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